Chancellor George Osborne personally intervened to prevent the Chinese President coming to Birmingham in a high-profile visit linked to major trade deals, the Birmingham Mail has learned.

Instead, he insisted President Xi Jinping go to Manchester, the heart of his pet “Northern Powehouse” project.

Mr Xi’s four-day state visit is seen as an opportunity to secure further trade deals and investment from China, the world’s second-largest economy.

Birmingham had been pushing for Mr Xi to come to the city - and the Chinese themselves wanted the visit to take place, the Mail has been told.

Those lobbying for Birmingham included senior councillors and officials, John Lewis Chairman Andy Street, who chairs business organisation the Greater Birmingham Local Enterprise Partnership, and Sajid Javid, the Business Secretary and MP for Bromsgrove.

The plan was to use the visit to announce that Chinese manufacturer Changan Automobile is to create hundreds of jobs by relocating its UK operations to Birmingham Business Park. Announcements about Chinese investment in rail and infrastructure were also planned.

China is also set to build the HS2 high speed rail line, which will initially run between London and Birmingham, after Mr Osborne last month invited Chinese firms to bid for contracts.

But even though the £50 billion line is expected to have its headquarters in Birmingham, the city will not be included in the state visit.

A guard of honour rehearses outside Buckingham Palace in advance of the state visit by Chinese President Xi Jinping. (Image: Dan Kitwood/Getty Images)

The Government says the state visit that will see more than £30billion worth of trade and investment deals completed, creating over 3,900 jobs across the UK

Asked why the Chancellor had insisted the Chinese delegation visit Manchester rather than Birmingham, a Treasury spokesman referred us to Number 10 press office.

A Number 10 spokesman said: “The details of the visit were agreed between the Chinese and us and there is no reason for us to comment further.”

Chancellor "will only fund projects in the Northern Powerhouse"

Northern Powerhouse Minister James Wharton

A Government Minister has boasted that Chancellor George Osborne is only willing to provide funding for schemes in the north of England.

James Wharton, the Minister responsible for the Government’s “Northern Powerhouse” project, made the claim at the Conservative Party conference in Manchester.

He told a fringe event at the conference that Ministers in every department of the Government had realised the only way they could get support for their projects was to link them to the Northern Powerhouse.

He said: “If you go to the Treasury with a plan at the moment and it costs money, you have quite a challenge making your case successfully.

“For reasons we are all familiar with, these are difficult times financially as we try to put right the financial mess we inherited way back in 2010.

“If you go with a Northern Powerhouse aspect to your proposal, you perhaps have that little bit extra chance to make your case.

“There is perhaps a slightly wider space in which you can explain why this project matters and why it should be facilitated.”

He continued: “That may sound like a small thing, but to anyone who knows how government works it’s a huge thing. Because politics is about having the will to deliver things.

“Things that are driven because people believe in them are more likely to be successful. And have no doubt, this is a government that believes in the Northern Powerhouse.”

Birmingham falling behind Manchester, House of Commons told

Liam Byrne MP

Birmingham is falling behind Manchester, a city MP has warned.

Speaking in the House of Commons, Birmingham Liam Byrne (Lab Hodge Hill) painted a gloomy picture of the failure of Birmingham and the West Midlands to keep up with its rivals.

He called on the Government to help the West Midlands succeed by letting councils make more decisions locally.

He said the West Midlands was failing to create highly skilled and high-tech jobs - unlike the North West, where Manchester and Liverpool are the big cities.

“Our knowledge economy - the jobs of the future - is actually shrinking, not getting bigger.

“In fact, it has 2,000 fewer jobs than it had before the recession, whereas other regions, such as the north west, have about 35,000 more jobs.”

And he warned that new businesses were opening in Manchester faster than in the West Midlands.

“Up in Manchester, 20% more businesses are opening than in the West Midlands.”

Government figures show 14,705 new businesses opened in the Greater Manchester in 2013, compared to 12,295 in the “Greater Birmingham” area of Birmingham, Wolverhampton, Coventry, Solihull, Walsall, Sandwell and Dudley.

What will the Chinese President do in the UK?

The Prince of Wales and the Duchess of Cornwall greet Xi and Peng on behalf of the Queen, at the Mandarin Oriental Hotel. The Queen and the Duke of Edinburgh then formally welcome Xi and Peng at the Royal Pavilion on Horse Guards Parade.

The president, accompanied by the Duke of Edinburgh, will inspect the Guard of Honour. Afterwards, Xi and Peng will join the Queen and the Duke of Edinburgh for a state carriage procession along The Mall to Buckingham Palace.

Following a private lunch at Buckingham Palace, given by the Queen, Her Majesty will invite Xi and Peng to view an exhibition in the picture gallery of items from the royal collection relating to China.

In the afternoon, Xi and Peng will visit the Palace of Westminster, where they will be welcomed by the speaker of the House of Commons and the lord speaker. The president will deliver an address in the royal gallery to members of Houses of Parliament and other guests.

Afterwards, Xi and Peng will meet with the Prince of Wales and the Duchess of Cornwall at Clarence House. They will be invited to view a display by the Prince’s School for Traditional Arts and meet students, and thereafter they will join their royal highnesses for tea.

Later, the Duke of Cambridge will call on the Xi at Buckingham Palace. Following this, Xi will receive an official call at Buckingham Palace by Labour leader Jeremy Corbyn. In the evening, the Queen will give a state banquet at Buckingham Palace. She and the president will make speeches.

Wednesday October 21

In the morning, Xi will visit Imperial College London. He will be joined by the Duke of York and the Chancellor George Osborne.

Later in the morning, Xi and Peng will join Prince William and Kate Middleton at a creative industry event at Lancaster House. It will celebrate cultural collaboration, existing and future, between the UK and China.

Afterwards, Xi will meet Prime Minister David Cameron at Number 10 Downing Street for a bilateral meeting. In the afternoon, Xi and Cameron will visit the UK-China Business Summit at Mansion House. The summit will focus on investment, infrastructure and innovation, and will build on the two countries’ cooperation in bilateral trade and two way investment.

Later, Xi will visit Huawei Technologies. He will receive presentations looking at Huawei’s 14 years in the UK, its innovation work with UK partners and the latest technology trends.

In the evening, Xi and Peng, joined by the Duke of York, will attend a banquet at Guildhall given by the Lord Mayor and City of London Corporation. The Lord Mayor and the president will make speeches.

Thursday October 22

Xi and Peng will formally bid farewell to the Queen and the Duke of Edinburgh at Buckingham Palace in the morning.

The president, joined by the Duke of York, will visit Inmarsat, a leading provider of global satellite communication services.

Afterwards, Xi and the Duke of York will join a Confucius Institute conference hosted by UCL Institute of Education at the Mandarin Oriental Hotel. In the evening, Xi and Peng will join David Cameron and his wife Samantha at Chequers Court for talks and dinner together. Later, Xi and Peng will fly to Manchester ahead of the final day of the state visit.

Friday October 23

In the morning, Xi and Osborne will visit the National Graphene Institute at the University of Manchester.

Later in the morning, Xi and Cameron will visit the City Football Group. Afterwards, the president and Peng will be joined by the prime minister for lunch at Manchester Town Hall hosted by the Lord Mayor of the City of Manchester. Invited guests will include civic and business representatives.

In the afternoon, Xi, Peng and Cameron will attend an event at Manchester Airport. At the conclusion of the state visit, the Lord Chamberlain will bid farewell to Xi and Peng on behalf of the Queen before they depart from Manchester Airport.